Process for debt on cancelled record

When you establish a debt on a cancelled record or create a debt at cancellation of benefit the regulation 208 indicator will not display. Instead you will receive a message stating:

• "Debt created, is the debt recoverable in terms of regulation 208?"

You will need to decide whether or not the debt is recoverable.

If the debt is recoverable:

• add notes in the client event to record your decision

If you need to investigate further:

• advise Client Support – Debt Management immediately to stop debt recovery action by phone and confirm by email

If the debt is non-recoverable:

• add notes in the client event to record your decision
• email Client Support – Debt Management who can view the Recommendation for regulation 208 from the client event and who will update the debt details in TRACE
• advise the client that the debt is non-recoverable

If the debt created is non-taxable (for example Accommodation Supplement), the debt automatically transfers to TRACE.

If the debt created is taxable (for example Jobseeker Support) SWIFTT will generate a memo via LSUM. The memo has the details that you need to add the debt correctly in the appropriate tax year. For information about how to do this, see:

• Adding a debt to the tax year